Michael's Furniture Store buys a bed frame at a wholesale price of $96.00. If the markup rate at Michael's Furniture Store is 50%, what is the total markup for the bed frame in dollars?
Remember that a markup rate is a percentage of the wholesale price that a store adds to get a selling or retail price. The amount of markup can be found with the following equation: markup rate $\times$ wholesale price $=$ amount of markup Since the markup rate is a percentage, we have to convert it into a decimal first. Percent means "out of one hundred," so $50\%$ is equivalent to $\frac{50}{100}$ which is also equal to $50 \div 100$ $50 \div 100 = 0.50$ Now you have all the information you need to use the formula above! $0.50$ $\times$ $$96.00$ $=$ $$48.00$ The amount of markup on the bed frame is $$48.00$.